It takes time to build trust, instill confidence and build a relationship with your customers. Let’s face it: most of them won’t buy anything on their first visit. Customers are either browsing, doing market research and comparative analysis or not entirely sure your offer is what they need. It’s why you’ll need something to engage your customers with something we call a “lead magnet.”
What is a lead magnet?
A lead magnet is the (free) offer you make on your website in exchange for visitors’ email addresses. Since we all hesitate to provide information on the internet, you must gain your customers trust by offering them something in return.
The goal of a lead magnet is to maximize the number of targeted leads you receive in exchange for an offer and can be considered the first step in your customer value optimization process.
Why Use Lead Magnets?
Lead magnets are sales catalysts. Driving traffic to your website is not enough to have a positive impact on your business. In order for those visitors to provide any value to your company, they need to become subscribers, leads or customers through your website. Lead magnets capitalize on specific incentives offered on your lead generation or ‘landing’ page to convert visitors into customers.
“Potential” becomes “profitable” as your customer base expands rapidly and extensively. When you offer your users something that makes them super-excited, you get the job done easily--the trick is to combine usefulness with interest.
Examples of great Lead Magnets:
Moz offers a free 30-day trial to get more daily signups.
Robbie Richards uses a beautiful call to action, ‘Let’s Do This!’, to encourage visitors to sign up for his newsletter offering advice on how to increase website traffic.
Another great example from Robbie, offering ebook downloads as a lead magnet.
The Math behind Lead Magnets
A strong Lead Magnet will boost your revenue generation stream by minimizing missed opportunities. The following table provides a quick overview of the figures that prove the necessity of having a good magnet in place.
Different Kinds of Lead Magnets
The kind of lead magnets you offer will vary depending on if you’re providing a service or selling physical products. While the form may differ, in both cases the more valuable your lead magnet is to your ideal customer, the more likely they will be to use it. There are many different lead magnets to choose from, so avoid copy-pasting. Identify what you want to achieve and choose your lead magnet accordingly. Here are some examples of popular lead magnets:
- Offer free software downloads or a trial version.Anyone who wants to see the product in action enters their email address. Then they are immediately taken through an interactive demo of how the tool works.
- Checklists and handouts. They are generally very short (one page or so) and cut straight to an ultra-specific point and they can be delivered as checklists, mind maps or templates. They help customers work through a complicated project without missing any key pieces.
- Quiz or Survey. This can be a very engaging way to generate new leads by sending the quiz results via email. Quiz building tools like Interact make it easy to generate fun, entertaining quizzes.
- Video trainings or webinars. These can be excellent tools if you feel they’re aligned with your business offering and you have development resources. Video can be a very effective way to deliver a lead magnet; simple screen cast tools like Camtasia or Screenflow make delivery easy.
- Free Shipping and Bonus Offers. Provide customers with one or more offers to join your email newsletter (or any other subscription list) with the promise of coupons and special deals like seasonal discounts or members’ only sales.
- Toolkits are one of those lead magnet examples that has worked to get massive results with seemingly little effort. It is a super simple landing page offering visitors a free PDF report with a super simple list of tools. That is it! Visitors arrive on the page and read the sales copy with the offer. Then they decide to enter their email to get the report delivered to their inbox, or not.
- Free Consultation or Buying Guides or Sales materials. The most desired piece of information for the market is pricing and descriptions of products or services. Often in their look out for the best deal out there, users will be willing to provide their email address for securing such treasured information for existing deals, and for the future.
- Free eBooks or Reportsare another popular type of lead magnets. You offer value in news, best practices, or advice, and visitors must fill out the form to opt-in and receive the free PDF via email.
Building an Attractive Lead Magnet
Lead Magnets do not have to be lengthy. Or complex. Or time-intensive to create. The key is to build a tool that solves a specific problem with a specific solution for a specific segment of your market. In order for your lead magnet to be effective, it has to be consumed by the consumer. The perfect Lead Magnet will offer tremendous value within 5 minutes of the opt-in. Just ask yourself the following questions:
- What offers will I make to new leads?
- How well do these offers convert?
- How much is a visit to my lead magnet landing page worth?
- How much is a new lead worth?
- How much is a new sale worth?
With the right Lead Magnet in place and systematically defined support processes behind it, your business will become a lead and sales generating machine.
Here are a few points to keep in mind when you get ready to develop lead magnets:
- Understand what your ‘ideal’ prospect really wants
- A good lead magnet creates ‘aha’ moments
- Don’t go with the flow. Be contrarian. Dare to be disruptive.
- Specificity: Offer something that clearly leads to your product or solution
- Offer something that helps makes prospects a buying decision
- The perceived value of the magnet should surpass the reluctance of a mildly interested browser in giving up their personal information
- Emphasize on the ‘shareability’ of the magnet
- Be simplistic. Do not let superfluous ingenuity compromise the value creation of the magnet
Which lead magnet are you looking forward to trying out? Tell us in the comments below. Not selling online yet? Launch your online store with PrestaShop Cloud – our still free and hosted version!